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FASHION FALLOWER AND INDUSTRY LEADER

Zeynep Alpagot 080205005


Merve Arslan 050401008

Zara Clothing is a fashion empire.

Zara was established by Omega in


1975.

Zara is owned under the Inditex Group,


which owns plenty of other beauty
companies.

The first Zara store was located on a central street in


La Coruna. Upon the success of Zara format, the firm
started to expand and opened further stores.

The store proved to be a success, and Ortega started


opening more Zara stores in Spain.

Zara is the largest and most internationalized of the


six retailers that Inditex owns: (Zara, Massimo
Dutti, Pull & Bear, Bershka, Stradivarius, and
Oysho). By the end of 2001, Zara operated 507
stores around the world.

Each year several hundred thousand SKUs are


produced based on 11,000 distinct items varying in
color, fabric and size.

Zara has been to Turkey in 1998, and 50 are stores.

nstead of reducing cost , zara makes faster production


and creation in turkey.

Zara has 1058 stores located in 68 countries


around the world . The average Zara store is about
1500 square meters. Zara strategically opens its
stores in heavily trafficked, high-end retail areas.

The countries in which Zara operates are:


Country Number of stores

Spain 364 -France 103-Portugal 59- Italy 57- Germany 56

United Kingdom 50 - Brazil 47-Greece 43 -United States 30

Japan28 -Belgium20- Turkey 19 - Saudi Arabia 18


Poland 17 -Russia 16- Canada 14- Israel 13 -Netherlands 13 -China 11
Sweden 9 -Austria9-Switzerland9 -Argentina9 -Venezuela 9

Chile 6- Indonesia 6- Ireland 6 -Czech Republic 5- Kuwait 5


Malaysia 5- Philippines 5 -Singapore 5
Cyprus 4-Denmark 4 -Finland 4- Lithuania 4 Slovenia- 4
Serbia 3 -Colombia 3 -Hungary 3- Latvia 3- Morocco 3
Costa Rica 2- El Salvador 2- Iceland 2- Jordan 2- Lebanon 2 Luxembourg 2 -Panama 2
-Qatar 2 -Romania 2-Uruguay2

Zara target market is for


ladies who love to dress
elegance , casual or more
fashionable.

Zaras marketing strategies


Zaras marketing strategy focuses on
product variety, speed-to-market, and
store location. It is also notable for
what it excludes. Zara does not
advertise in the traditional sense. If
you want to find out whats currently
available at the Zara stores you have
two options: go to the web site or go to
the store. Zara puts 10,000 different
items on the store shelves in a single
year. It can take a new style from
concept to store shelf in 10-14 days in
an industry where nine months is the
norm. In its primary European markets,
Zara locates its stores close together.

Location Important For ZARA


The manager of Zara says that:

These office buildings are full


of the people we want as
customers. We want them to
stop in at lunch or after work.
We want to see them often,
so we have to change what
we have on the shelves, said
Zaras Toronto store manager.
They could shop in a lot of
other stores, so we have to
make it worth their time to
come here.

Around the world


Brand
Zara

Quantity
1.058

Zara Kids

205

Pull & Bear

663

Massimo Dutti

519

Bershka

698

Stradivarius

573

Oysho

422

Zara Home

272

Uterqe

72

TOTAL

4.907

Why does not Zara make an


advertisement?

why the company does not


advertise. If a Zara customer wants
to know what Zara has, he or she
must go to the store. The stock
changes often, with most items
staying on the shelf for only a
month, so the customer often finds
something new and appealing.
By the same token, if the customer
finds nothing to buy this visit, the
stores regular customers know that
tomorrow or next week new goods
will be on Zaras shelves. That
makes it worth another visit.

Price strategy

Zaras business model makes it more


profitable then any other retailer. We already
know from marketing that the retailer gets
almost half the price of the commodity sold.
So by playing both the role of the
manufacturer and the role of the retailer,
Zara is definitely much more profitable than
the average retailer with similar posted
prices.

Zaras pricing strategy is to set price equal to


cost plus a target margin. Zara prices are
based on comparables within the target
market, subject to covering costs plus a
target margin.

Store Atmospherics
Store Atmospherics is another
significant strategy for retailer.
Inside and outside of stores should be
attractive for consumers in order to
do shopping easily.

Zara focuses on store


atmospherics strategy. For instance;
it provides refreshing, warm,
hygineical stores.

Zaras competitors

Zaras strongest competitor is H&M.Zara has 1.02 million euros in


current assets. H&M however, has 3.40 million euros in current assets.
From this we can understand that Zara is less liquid, possibly because
they have more fixed assets and turn their inventory over quickly.

The most interesting of Zaras


competitors for comparison is Hennes
and Mauritz(H&M).H&M differs from
Zara becouse they outsource all of
their production,spend more
advertising and is price-oriented.

Key similarities for comparison


between Zara and H%M are that are
Europen based companies ,are
fashion forward at lower price retailers
and have a strong international
expansion strategy

General Evaluton
Zara, which contributes around 80 per cent group sales
concentrates on three winning formula to bake its fresh fashions:
Short Lead Time = More fashionable clothes
Lower quantities = Scarce supply
More styles = More choice, and more chances of hitting it right

All of the strategies and tecniks constitute Zaras


competetive advantages and makes the company
different between competitors.Zara shows us their
seriosness whit this slogan
Cool Clothes Now, Not Later